Instructions For Form 8864 - Biodiesel And Renewable Diesel Fuels Credit - 2017

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2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 8864
Biodiesel and Renewable Diesel Fuels Credit
Line 11
Section references are to the Internal Revenue Code
unless otherwise noted.
A cooperative, estate, or trust allocating the small
General Instructions
agri-biodiesel credit must give the patron or beneficiary a
statement providing them with the number of gallons for
which it claimed the credit and its productive capacity for
Future Developments
agri-biodiesel. An estate or trust must also provide the
For the latest information about developments related to
amount of the small agri-biodiesel credit included as part
Form 8864 and its instructions, such as legislation
of the pass-through credit. See the above instructions for
enacted after they were published, go to
line 9.
IRS.gov/Form8864.
Cooperatives. A cooperative described in section
What's New
1381(a) can elect to allocate any part of the small
agri-biodiesel producer credit to patrons of the
The section 40A biodiesel and renewable diesel fuels
cooperative. The credit is allocated pro rata among the
credit expired for fuel sold or used after December 31,
patrons eligible to share in patronage dividends on the
2016.
basis of the quantity or value of business done with or for
At the time these instructions went to print, the
the patrons for the tax year.
biodiesel and renewable diesel fuels credit
!
If the cooperative is subject to the passive activity rules,
formerly claimed on lines 1 through 8 had expired.
include on line 9 any Form 8864 credits from passive
CAUTION
You can’t claim the credit on lines 1 through 8 for biodiesel
activities disallowed for prior years and carried forward to
and renewable diesel fuels sold or used after 2016. Lines
this year. Complete Form 8810, Corporate Passive
1 through 8 are now shown as “Reserved for future use” in
Activity Loss and Credit Limitations, to determine the
case Congress extends the credit for 2017. To find out if
allowed producer credits that can be allocated to patrons.
legislation extended the credit so you can claim it on your
For details, see the Instructions for Form 8810.
2017 return, go to IRS.gov/Extenders.
The cooperative is deemed to have made the election
Purpose of Form
by completing line 11. However, the election is not
effective unless:
Use the 2017 Form 8864 to report any biodiesel and
It is made on a timely filed return (including extensions);
renewable diesel fuels credit you received from a fiscal
and
year partnership, S corporation, cooperative, estate, or
The cooperative designates the apportionment in a
trust whose tax year began in 2016 (when the credit was
written notice or Form 1099-PATR, Taxable Distributions
still available) and ends during your 2017 tax year.
Received From Cooperatives, mailed to its patrons during
the payment period described in section 1382(d).
Specific Instructions
If the cooperative timely filed its return without making
the election, the cooperative can still make the election by
Lines 1 Through 8
filing an amended return within 6 months of the due date
of the return (excluding extensions). Enter “Filed pursuant
These lines are now shown as “Reserved for future use” in
to section 301.9100-2” on the amended return.
case Congress extends the credit for 2017. When any
form, worksheet, or instruction refers to these lines, treat
Once made, the election cannot be revoked.
the amounts on these lines as zero.
Estates and trusts. Allocate the biodiesel and
Line 9
renewable diesel fuels credit on line 10 between the
estate or trust and the beneficiaries in the same proportion
If you’re allocated a small agri-biodiesel producer credit
as income was allocated and enter the beneficiaries’
from a pass-through entity, the entity must tell you the
share on line 11.
number of gallons for which it claimed the credit and its
If the estate or trust is subject to the passive activity
productive capacity for agri-biodiesel. You, as a
rules, include on line 9 any Form 8864 credits from
shareholder, partner, beneficiary, or patron, are subject to
passive activities disallowed for prior years and carried
the 15-million-gallon limitation for qualified agri-biodiesel
forward to this year. Complete Form 8582-CR, Passive
production and the 60-million-gallon productive capacity
Activity Credit Limitations, to determine the allowed credit
limitation for an eligible small agri-biodiesel producer.
that must be allocated between the estate or trust and the
If the estate, trust, or cooperative is subject to the
beneficiaries. For details, see the Instructions for Form
passive activity rules, include on line 9 any Form 8864
8582-CR.
credits from passive activities carried forward to this year,
using the allocation instructions for line 11, next.
Jan 18, 2018
Cat. No. 66373S

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